BUHLER INDUSTRIES ANNOUNCES NEW $60M CREDIT FACILITY

(TSX: BUI)

WINNIPEG, MB, Dec. 23, 2024 /CNW/ - Buhler Industries Inc. (Buhler Industries or the Company) is pleased to announce that it has entered into a new credit facility with Citi allowing the Company to borrow up to $60 million with an additional uncommitted accordion of up to $20 million for total availability of up to $80 million. The new asset-based lending facility has a term of three years and is extendable subject to approval by the lenders. The loan is subject to a maximum draw and based on a borrowing base calculated as a percentage of eligible accounts receivable and inventory. The new credit facility replaces the Company's previously held credit facility which was paid out in its entirety in July 2024.

The credit facility will be used to finance operations including investment in research and development. The facility is secured by a general security agreement and assignment of specific receivables and inventory in Canada and the United States.

Furthermore, Buhler Industries has already received a $45 million credit facility with Farm Credit Canada (FCC). Under the terms of the agreement, FCC provided a $35 million dollar mortgage to the Company.  The Company has already drawn $25 million to repay its line of credit in July.  A further draw of $10 million is for operations and/or the repayment of related party debt.  The mortgage is amortized over a 15-year term and has no principal repayment in the first year. In addition, FCC will provide a $10 million revolving loan to the Company for investment in capital expenditures.

About Buhler Industries
Buhler Industries is headquartered in Winnipeg, Manitoba, Canada and is a publicly traded Company on the TSX (TSX: BUI). The Company manufactures and distributes its product through several brand names including Versatile and Farm King. The Versatile line of equipment consists of tractors and tillage. Farm King supplies augers, mowers, bale carriers, snowblowers, and compact implements. The Company has manufacturing facilities and warehouses in both Canada and the United States.

About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

Forward-looking statements: Certain statements made above contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance. Such forward-looking statements represent Buhler Industries current views based on information as at the date of this report. They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Factors that could cause results to differ from those expected include, but are not limited to: the terms, availability and costs of acquiring raw materials and the ability to pass on price increases to customers; ability to negotiate contracts with new customers or renew existing customer contracts with less favorable terms; timely response to changes in customer product needs and market acceptance of our products; the potential loss of business or increased costs due to customer or vendor consolidation; competitive pressures, including new product development; industry capacity, and changes in competitors' pricing; ability to maintain or increase productivity levels; ability to contain or reduce costs; foreign currency exchange rate fluctuations; changes in governmental regulations, including environmental, health and safety; changes in Canadian and foreign income tax rates, income tax laws and regulations. Unless otherwise required by applicable securities law, Buhler Industries disclaims any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance upon forward-looking statements. 

SOURCE Buhler Industries Inc.

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